These are not the most exciting times for XRP price watchers. This popular digital asset continues to lose value at a rather alarming pace, and has dipped below the $0.5 threshold for the first time in a few days. That is not a positive outlook, as it appears the downtrend has only just begun to hit its stride.
XRP Price Struggle Intensifies
Even though both Bitcoin and Ethereum are not suffering from too much bearish pressure, the situation is very different where XRP is concerned. After an initial rise in value weeks ago, it has proven increasingly difficult to maintain this level for an extended period of time. A retrace to $0.492 is the logical outcome, although the value may continue to dip even further.
More specifically, it appears the XRP price decline is fueled primarily by an ongoing loss in the BTC department. Another 4.8% setback against Bitcoin has materialized over the past 24 hours, which effectively results in a 486% drop in USD value. Overcoming this trend is not necessarily difficult, although it remains strange to see this negative pressure materialize.
This downtrend has materialized at a strange time. First of all, a lot of positive news was communicated as part the 2018 Swell conference This is always a major deal for Ripple, and by extension, its native XRP asset. Despite all of the positive announcements, it seems the market is reacting in an overly bearish manner.
There is also the announcement regarding Crypto.com enabling XRP support. This asset is now live as part of its mobile app and will be supported as part of the upcoming debit card. One would expect XRP holders to load up on this asset prior to seeing that happen, yet it seems the announcement has made investors wary first and foremost.
According to C3!Nik, the current downtrend is easy to explain. There is no bad news to be concerned about, yet it seems there isn’t enough volume across exchange to sustain a bullish uptrend. Just $530m in volume is not sufficient for an increase, yet it seems unlikely this will change anytime soon. The increasing use of xRapid might spike demand for the asset, although it is likely to assume the service providers have already purchased sufficient liquidity for their operations.
In my opinion it is not bad news that there is not much volume on exchanges yet.
That means that we are at the very beginning of the xRapid launch and there is more to come:
— C3|Nik (@C3_Nik) October 6, 2018
Based on the current market conditions, it seems more likely the XRP value will drop to $0.45 or even lower in the coming weeks. That is not a positive sign by any means, although it is not something the markets can avoid at this time. For the time being, one has to take the good with the bad in the XRP department, although things can change in a heartbeat.